Pre‑revenue With Widening LossesRemaining pre‑revenue while losses widen reduces visibility on when operations will generate cash. Persistent negative earnings increase dilution or refinancing needs, shorten runway, and raise execution risk: without near‑term production or a material financing/JV, value realization is uncertain.
Persistent Negative Operating And Free Cash FlowSustained negative operating cash flow and worsening free cash flow signal ongoing heavy cash burn to fund exploration and studies. This structural cash deficit compels continual external funding, raises dilution risk, and constrains the company’s ability to respond to delays or cost overruns in project development.
High And Rising LeverageLeverage rising to over 1x reduces financial flexibility for a pre‑commercial miner: it increases fixed servicing costs, heightens refinancing and covenant risk, and limits ability to raise opportunistic equity or pursue additional projects without materially worsening the balance sheet or cost of capital.